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European Union records first annual drop in solar energy since 2015

Residential sector slows down, driving down the European photovoltaic market

European Union records first annual drop in solar energy since 2015

Photo: Freepik

The European Union is expected to add 64,2 GW of solar PV capacity in 2025, surpassing the cumulative 400 GW mark, according to projections from SolarPower Europe. Despite the advance, the volume represents a 1,4% drop compared to 2024, when 65,1 GW were added, the first annual decline since 2015.

The contraction is primarily attributed to the decline in distributed generation, especially in the residential segment. With the electricity market normalizing after the 2022 energy crisis, consumers in countries like Italy, the Netherlands, and Belgium are postponing investments. "The momentum we saw in rooftops is clearly losing momentum," the report notes.

On the other hand, centralized generation continues to rise and is expected to account for half of new capacity in 2025. More efficient auction models have driven the contracting of 20 GW in 2024, with a focus on hybrid projects with storage in countries like Germany and Bulgaria. 

Meanwhile, private power procurement contracts (PPAs) fell 41% between the first two quarters of this year, impacted by falling electricity prices. To reach the 750 GW target by 2030, the European bloc will need to add around 70 GW per year until the end of the decade. At the current pace, installed capacity is expected to reach 723 GW.

Exclusive
The projection is based on three scenarios developed by SolarPower Europe: Low, Medium, and High. The Medium scenario, considered the most likely, takes into account current market conditions. The Low scenario assumes reduced political support and worsening economic conditions, while the High scenario assumes a favorable environment with continued stimulus. 

Check out the European Union study by clicking here.

 

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Raphael Guerra
About the Author
Raphael Guerra

Journalist graduated from PUC Campinas. Worked at Futpress, TV Século 21 and ENM. Has experience in podcasting, television, radio and press relations.

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